SUPERNUS PHARMACEUTICALS INC

Our executive compensation program seeks to provide total compensation at pay levels of executives with similar roles at comparable companies when targeted levels of performance are achieved. Use of peer group survey data provided by Aon plays a significant role in the structure of the compensation program. It is an important input in setting base salaries and target levels for cash bonuses and equity awards and to establish target compensation levels that are market competitive in order to attract and retain talent.

The Company participates in compensation surveys conducted by Aon each year. The Company has access to the resulting Aon reports, which are specific to the pharmaceutical and biotechnology industries and provide data on salaries, cash bonuses and equity awards for specific job functions. Aon’s input is a significant input for assessing our executive compensation program.

With the guidance of Aon, the Compensation Committee determined the Peer Group for use and reference in 2023. The Compensation Committee used the peer data and the assistance of Aon to identify a reasonable reference point for base salaries, cash bonuses and equity awards. The Committee then analyzed overall company and individual executive performance to make final compensation decisions, which were recommended to the Board of Directors for approval (in the case of the CEO).

The criteria the Committee used for selecting peers included:

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Public commercial biopharmaceutical companies with a product on the market;

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Market capitalization values generally between $500 million and $5 billion;

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Companies with annual revenue generally between $200 million and $2 billion; and

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Companies with 200-2,000 employees reflecting other organizations of similar scale and complexity.

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Using these criteria, the following companies were determined to comprise the Company’s peer group (the “Peer Group”):

Compared to the Peer Group, for 2022, the Company was at the 69 th percentile of revenues, 32 nd percentile of market capitalization, 36 th percentile for 1 year total shareholder return, and the 70 th percentile of Peer Group headcount.